POLL: Is the U.S. “whistleblower law” to catch non-compliant taxpayers good policy?
The U.S. federal government has an “informant award” program that pays private individuals who provide information about other taxpayers. USCs and LPRs who live outside the U.S. are subject to being reported upon by private persons throughout the world.
The payment is mandatory by the government if the statutory requirements are satisfied. The IRS summary of the law can be found on their website – here – and provides –
“The IRS Whistleblower Office pays money to people who blow the whistle on persons who fail to pay the tax that they owe. If the IRS uses information provided by the whistleblower, it can award the whistleblower up to 30 percent of the additional tax, penalty and other amounts it collects.”
For more details on the whistleblower program, you can review – The 2013 GAO Report of the IRS Offshore Voluntary Disclosure Program, International Tax Journal, CCH Wolters Kluwer, January-February 2014.
What do you think? Take the poll.
One thought on “POLL: Is the U.S. “whistleblower law” to catch non-compliant taxpayers good policy?”
May 20, 2014 at 9:19 pm
I am amazed hat the following question ranks in first place at this point in time:
“No, it seems unseemly in a civil democracy that private citizens would have incentives to become “de facto” spies or investigators for the U.S. federal government.”
What is mor unseemly and undermines a civil democratic government than taxpayers who cheat on their taxes thus forcing their fellow citizens to
pick up the slack.
What does it matter where the tip comes from as long as it results in legitimate tax scofflaws being brought to justice?